Addendum to Mortgage and Note

This addendum is incorporated into and made part of the attached note & mortgage of even date. In the event of a conflict between the terms of this addendum and the mortgage & note, the terms of this addendum  prevails.

Property Taxes and insurance

Lender shall not escrow for taxes or insurance. Borrower shall pay these costs directly themselves. The Borrower shall  pay the annual property taxes no later than March 31 of the year after that for which they are payable. That is to say by example, the taxes for calendar year 2011 are payable with maximum discount by November 30, 2011. They will however always be paid by March 31 2012. And so on for following years. If they are not paid by the end of March, and proof of payment mailed to Lender, the mortgage shall be in default. Lender shall give 30 days notice to Borrower to cure this default and may then, at Lender’s option, (i) foreclose the mortgage and/or (ii) pay the taxes themselves, the amount of these taxes being added to the principal outstanding of the loan and earning interest at the same rate as the remainder of the loan.

In the event the mortgagor does not renew the hazard insurance policy then mortgagee may obtain loss payee insurance coverage only, or pay for the regular property insurance at mortgagee’s sole option, which cost shall be payable by the mortgagor. Failure to reimburse the mortgagee for the cost of this policy within 10 calendar days after being mailed a bill for it shall constitute default under the mortgage and the lender shall be entitled to commence foreclosure without further notice to borrower.

Lender may, in their sole discretion, escrow for taxes and insurance as provided under the mortgage.

If loan is second mortgage

In the event that this loan is a second mortgage, borrower agrees to mail or fax to the above lender a photocopy of the front and back of the cancelled check or other receipt showing the first mortgage has been paid every month not later than 45 days after the first mortgage due date. Thus, if the first mortgage payment is due on the 1st of February 2011, the lender shall receive this copy no later than 15th March 2011. Failure to do this shall constitute a default under the mortgage, even if the first mortgage is current. Lender will give borrower 30 days notice to cure default by sending the above proofs and may then foreclose the mortgage.

Borrower understands, confirms and agrees that the lender may contact the first mortgage holder for any reason and to determine if the first mortgage is current.

A default on the first mortgage creates a default on this second mortgage, even if this second mortgage is current.

Giving notice by Lender

Lender may give notice to the borrower by 1st class mail and is not required to serve notices by certified mail.

Prepayment Penalty

In the event the note and mortgage provides for a prepayment penalty the amounts of that penalty shall be as follows: Prepayment months 1-12, 3.75% of the outstanding principal, in months 13-24, 1.25% of the outstanding principal, thereafter zero. All other terms provided for shall apply. Prepayment caused by foreclosure of this loan shall attract the same, above prepayment penalties.

Persistent Late Payments and Dishonored Checks

If payments from the Borrower are received more than 15 days late 4 times in any 12-month period the Lender may mail to the Borrower a notice demanding strict performance. Thereafter the Lender may accelerate the loan without notice if payments from the Borrower have not been received 5 days after the due date. If the Lender receives a bad check, Lender can demand that all future payments are made by money order or cashier’s check.

Access to Property

Borrower grants the seller/ mortgagee (or their agent) the right to access the property for inspection purposes or to have an appraisal performed with reasonable notice.


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Borrower, Address, City, State, Zip                                                             Date